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238 Big Companies At High Risk of Default - Moodys - Food Companies Too

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posted on Mar, 10 2009 @ 09:55 PM
Moody's has released information saying 238 large companies are at High Risk for Default this year. Some names may surprise you! They are huge corporations, including Food Companies!

Various sources:

Eastman Kodak Co. and MGM Mirage are among 283 U.S. companies likeliest to default, about a quarter of speculative-grade issuers, as a deepening recession raises the risk that borrowers may miss interest payments.

The number of high-yield, high-risk issuers on the “Bottom Rung” list compiled by Moody’s Investors Service almost doubled from 157 a year earlier, the New York-based ratings company said in a report published today.

“The current Bottom Rung list provides ample evidence of a severe default cycle,”

MGM Mirage, which owns 10 Las Vegas casinos and was added to the “Bottom Rung” this quarter, has $8.1 billion of bonds outstanding, with $1.28 billion coming due this year, according to data compiled by Bloomberg. Gambling revenue in Las Vegas, the biggest betting center in the U.S., fell the most on record last year, causing declining sales at MGM Mirage.

Rochester, New York-based Kodak, another new entrant, has $1.4 billion of bonds outstanding, including a $500 million facility maturing in October 2013, Bloomberg data show. Kodak, founded in 1880 by camera pioneer George Eastman, saw its profitable film business “evaporate” as digital cameras gained dominance, Chief Executive Officer Antonio Perez said in an interview on Feb. 5.

from source:

A total of 283 publicly traded US companies including many high-profile firms are at high risk of defaulting on their debt payments, Moody's Investors Service said Tuesday.

Moody's newly created "Bottom Rung" includes companies known to be in distress including automakers General Motors and Chrysler, but also corporate icons such as Eastman Kodak and American Airlines parent AMR Corp.

The financial rating firm said the list represents "the lowest-rated US non-financial speculative-grade companies

Among the well-known corporate names on the list are technology firms Palm and Advanced Micro Devices; retailers Barney's New York, Eddie Bauer and Loehmann's; food companies such as Chiquita Brands and Dole Foods; and travel firms including Orbitz, JetBlue and United Airlines parent UAL Corp.

I find it interesting that Chiquita and Dole are on the list, they are both fruit food companies. Why would food companies be having problems? I know a drought is underway in many places around the world. So - it is worrisome to me, that 2 food companies are in the group of highest default companies.

WSJ has the biggest 30 companies on the list:

Issuer Name Probability of Default Rating Corporate Family Rating Outlook Total Rated Debt Outstanding (in billions) Industry Sector
Allison Transmission, Inc. B3 B3 Negative $4.60 Automotive: Parts

AMR Corp. Caa1 Caa1 Negative $1.62 Transportation Services: Airline

Building Materials Corporation of America Caa1 B3 Negative $1.55 Manufacturing: Finished Products

Chrysler LLC Ca Ca Negative $9.00 Automotive: Passenger

Citadel Broadcasting Corp. Caa3 Caa2 Negative $2.29 Media: Broadcast Tv & Radio Stations

Claire's Stores, Inc. Caa3 Caa3 Negative $2.59 Retail: Department Stores

Dana Holding Corp. Caa1 Caa1 Rating under reveiw $2.08 Automotive: Parts

Dole Food Company, Inc. Caa1 B3 Negative $1.51 Natural Products Processor: Agriculture

Eastman Kodak Co. B3 B3 Negative $2.10 Technology: Hardware

Ford Motor Co. Caa3 Caa3 Negative $31.55 Automotive: Passenger

Freescale Semiconductor, Inc. Ca Caa1 Negative $10.20 Technology: Semiconductor

General Motors Corp. Ca Ca Negative $38.56 Automotive: Passenger

Georgia Gulf Corp. Caa2 Caa2 Negative $1.98 Chemicals: Commodity Chemical

Hawker Beechcraft Acquisition Co. B3 B3 Negative $2.85 Aircraft & Aerospace: Equipment

Idearc, Inc. Caa3 Caa2 Negative $9.29 Media Publishing: Books

Lear Corp. Caa2 Caa2 Rating under reveiw $2.30 Automotive: Parts

Level 3 Communications, Inc. Caa1 Caa1 Rating under reveiw $1.87 Telecommunications: Wireline

Michaels Stores, Inc. B3 B3 Negative $3.93 Retail: Specialty

OSI Restaurant Partners, Inc. Ca Caa1 Rating under reveiw $2.11 Restaurants: Family Dining

R.H. Donnelley Corp. Caa2 Caa1 Negative $3.48 Media: Printing - Holdco

Reader's Digest Association, Inc. Caa3 Caa3 Negative $2.21 Media Publishing: Newspapers & Magazines

Realogy Corp. Caa3 Caa3 Negative $7.56 Services: Consumer

Rite Aid Corp. Caa2 Caa2 Negative $6.80 Retail: Drug Stores

Source Interlink Companies Inc. Caa1 Caa1 Negative $1.63 Media Publishing: Newspapers & Magazines

Swift Transportation Co., Inc. Caa1 Caa1 Negative $2.98 Transportation Services: Trucking

Tenneco Inc. B3 B3 Negative $1.83 Automotive: Parts

Univision Communications, Inc. B3 B3 Negative $10.09 Media: Diversified Media - Fc

US Airways Group, Inc. Caa1 Caa1 Negative $1.60 Transportation Services: Airline

Visteon Corp. Caa1 Caa2 Negative $3.20 Automotive: Parts

Western Refining, Inc. B3 B3 Negative $1.40 Energy: Oil - Refining & Marketing

WOW, there are some BIG names on the list!!!!

Imagine the amount of people they employ!

posted on Mar, 10 2009 @ 10:06 PM
These are indeed scary times that are coming upon us, and I fear this is just the beginning. That list is going to keep growing!

posted on Mar, 10 2009 @ 10:16 PM
And for some crazy reason the markets were WAY up today. It makes me wonder what people are thinking. Citi "leaks" a BS memo that they are profitable (which I think is completely non-sense) and the every stoke on the DOW shoots up as if the someone came out and declare the recession is over.

Weird times we live in indeed.

posted on Mar, 10 2009 @ 10:39 PM
reply to post by finemanm

It is called manipulation!

It is called the PTB - throwing money into the market for all us little people to think the "bottom" was hit - so we would throw what little money we have left into it too.................. then they will take theirs out - as we lose all of our money as the market again takes a dive!

When I see big jumps like today............... I just sit back, wondering if people will really be "fooled" into throwing money at the markets again.

posted on Mar, 10 2009 @ 10:47 PM
And as i stated in a different thread ,if Citi did obtain a large profit ,it should be demanded returned to the government and back into taxpayers hands

posted on Mar, 10 2009 @ 11:01 PM
I dont see any problem at all, Obama has a platinium credit card.

posted on Mar, 10 2009 @ 11:05 PM
Wow, you know its bad when readers digest is going under.
I ask whyyyyyyyyyyyyy

posted on Mar, 10 2009 @ 11:06 PM
reply to post by branty

Sorry, but I think you posted on the wrong thread.......... this thread has NOTHING to do with Obama, it is ONLY about companies that are defaulting and have bad ratings........ so please find the other thread, you meant to post that on.

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